Chapter 10.4, Problem 1E

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11th Edition

Ronald J. Harshbarger + 1 other

ISBN: 9781305108042

Textbook Problem

** Return to sales** The manufacturer of GRIPPER tires modeled its return to sales from television advertising expenditures in two regions as follows:

(a) What advertising expenditures would maximize sales revenue in each district?

(b) How much money will be needed to maximize sales revenue in both districts?

**(a)**

To determine

**To calculate:** The advertising expenditures required to maximize sales revenue in the two regions

Explanation

**Given Information:**

Sales revenue

Region

Region

Where

**Formula used:**

To find the maximum value, calculate the relevant stationary value of an equation. Differentiate the function with respect to the independent variable and equate it to

The power rule is used for a function in which the expression can be written as every term raised to a power (be it fractional, positive or negative). For the function

**Calculation:**

Consider the provided equations,

Sales revenue

Region

Region

To find the critical value for

**(b)**

To determine

**To calculate:** The money required to maximize sales revenue in the two regions.

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